Aztec Company sells its product for $160 per unit. Its actual and projected sales follow.

	Units	Dollars
April (actual)	3,500	$560,000
May (actual)	2,200	352,000
June (budgeted)	6,500	1,040,000
July (budgeted)	6,000	960,000
August (budgeted)	3,800	608,000

All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 26% in the second month after the sale, and 4% proves to be uncollectible. The products purchase price is $110 per unit. All purchases are payable within 11 days. Thus, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 20% of the next months unit sales plus a safety stock of 175 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,572,000 and are paid evenly throughout the year in cash. The companys minimum cash balance at month-end is $120,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $37,000, and the companys cash balance is $120,000.(Round final answers to the nearest whole dollar.)

3.	Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month.

the table to fill in looks as follows

Aztec company

merchandise purchase budgets

for may june july

May June july

bugdeted ending inventory units

budgeted unit sales for month

required unit of available merchandise

budgeted beinging inventory units

budgeted purchases units

budgeted cost per unit

budgeted cost of merchandise purchases